NEW TODAY: OBAMA TAPS FURMAN AS CEA CHAIRMAN — Per a White House official: “On Monday afternoon, President Barack Obama will host an event at the White House to announce his intent to nominate Jason Furman as Chairman of the Council of Economic Advisers. The president will be joined by Jason Furman and Alan Krueger at the announcement, which will take place at 2:10 pm at the White House. Furman is currently Assistant to the President for Economic Policy and the Principal Deputy Director of the National Economic Council … Furman … helped craft the Recovery Act and was a core contributor to the shaping of the Affordable Care Act. … Furman has also played a key role supporting the president’s efforts to bring tax relief to middle class and working families, serving as one of the key architects of the 2010 tax deal … and helping to pass the American Taxpayer Relief Act of 2012.”

DECENT JOBS NUMBER (FOR NOW) – Friday’s jobs report showing a gain of 176,000 and a rise to 7.6 percent unemployment (based on people returning to the work force) was a relief following some decidedly gloomy data on manufacturing. But that may be the high point for a while especially as the fiscal bite from tax hikes and spending cuts still has months more to play out. Pantheon’s Ian Shepherdson: “Things could have been worse, given the payroll tax increase and the sequester, but there are no guarantees that all the fiscal hit has now been absorbed. If the saving rate were to rebound over the next few months, having dropped at the start of the year, the economy would quickly be in trouble.

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“[W]e think the odds strongly favor a clear slowing in employment growth in the next couple of months, following the rollover in both the ISM employment indexes and the Help Wanted Online, not to mention the end of the downward trend in jobless claims. The weighted average of the ISM employment indexes does a pretty good job of tracking the official private payroll numbers on a more or less coincident basis … [R]ight now they suggest we should expect softer payrolls in the near-term.”

ASIA BOUNCES BACK — Bloomberg at 1:20 a.m.: “Asian stocks rose, with the regional benchmark index heading for the biggest rally in three weeks, after a report showed the U.S. added more workers than expected. Japanese shares surged after a three-week, $600 billion rout. Japan’s Topix index jumped 4.1 percent, the most in two years … Toyota Motor Corp., the No. 1 global carmaker, gained 6.8 percent. … ‘The U.S. jobs data is giving the biggest boost to the market as it was strong, but not too good to stoke concern about scaling back stimulus,’ said Kenji Shiomura, a Tokyo-based senior strategist at Daiwa Securities Group” http://bloom.bg/14NNcMh

THE BIG STORY: NSA LEAKER REVEALED — POLITICO’s Reid J. Epstein: “The former CIA employee who leaked details about classified secret surveillance programs to the Guardian and the Washington Post revealed himself in a story published Sunday, saying that he has no apologies for his actions. Edward Snowden, 29, told the Guardian that he wanted his identity made public. ‘I have no intention of hiding who I am because I know I have done nothing wrong,’ he said. Snowden, who told the papers that he is at a hotel in Hong Kong, said he intends to seek asylum outside the United States. … Snowden is taking credit for leaking documents exposing both the National Security Agency’s PRISM program, which gathers electronic communications data from companies like Facebook and Google, and a government program designed to track every phone call made within or from the United States.

“Director of National Intelligence James Clapper acknowledged the existence of PRISM in a statement Saturday. Clapper reiterated President Barack Obama’s stance that Congress has been regularly briefed about the programs and approved the laws that allowed their creation. … His office referred questions about Snowden to the Justice Department, and said in a statement that ‘the Intelligence Community is currently reviewing the damage that has been done by these recent disclosures. Any person who has a security clearance knows that he or she has an obligation to protect classified information and abide by the law.’ http://bit.ly/11PI6gE

THIS MORNING ON POLITICO PRO FINANCE — MJ Lee on whether Brown-Vitter is gaining congressional support … To learn more about Pro's subscriber-only coverage — and to get Morning Money every day before 6 a.m. — please contact Pro Services at (703) 341-4600 or info@politicopro.com.

GOOD MONDAY MORNING — M.M. is on CNBC’s Squawk Box for the full show this morning 6 a.m. to 9 a.m. along with Business Insider’s Joe Weisenthal and Reuters’ Dan Colarusso. Tune in! As always, send your tips and comments: bwhite@politico.com; and follow on Twitter: @ morningmoneyben and @ POLITICOPro.

NBA BLINK — Heat flat out smoked the Spurs 103-85 last night as LeBron got hot late and drove a blistering 33-5 run that left San Antonio in the dust. Still, the Spurs leave South Beach with a split and they have to be happy with that. http://hrld.us/15OK4Cv

TONY AWARDS BLINK — “Kinky Boots” won for best musical and Cicely Tyson won her first Tony for “The Trip to Bountiful” http://lat.ms/18lrmqZ

** A message from the Investment Company Institute: Did you know that large majorities of Americans believe that tax incentives for 401(k) saving should be a national priority? Next time you read criticisms about 401(k)s, remember that an overwhelming majority of Americans support these plans. Learn more at www.ici.org/defendmy401k. **

TECHNOLOGICAL ADVANCES FUELED NSA — WSJ’s Siobahn Gorman, Adam Entous and Andrew Dowell: “Key advances in computing and software in recent years opened the door for the National Security Agency to analyze far larger volumes of phone, Internet and financial data to search for terrorist attacks, paving the way for the programs now generating controversy. … The NSA's advances have come in the form of programs developed on the West Coast — a central one was known by the quirky name Hadoop — that enable intelligence agencies to cheaply amplify computing power, U.S. and industry officials said.

“The new capabilities allowed officials to shift from being overwhelmed by data to being able to make sense of large chunks of it to predict events, the officials said.

The leaked documents forced the Obama administration to publicly acknowledge it is collecting many billions of U.S. phone records and monitoring foreign targets' Internet communications … The recent technical developments allowed NSA's abilities to catch up with its ambitions years after it began collecting phone records from millions of Americans in the wake of the 2001 terrorist attacks.” http://on.wsj.com/17B1Z3i

CONTRACTORS IN THE SPOTLIGHT — POLITICO’S Phil Ewing and Tony Romm: “The man who stepped forward to say that he leaked this week’s bombshell national security documents is a 29-year-old computer technician who never finished high school and washed out of his Army training. So how did a guy like that get access to America’s most sensitive secrets? Edward Snowden … was one of hundreds of thousands of private-sector workers supporting the intelligence community, Defense Department and other vital agencies. … It’s a population so huge that no one, including the leaders of the Pentagon and the intelligence community, knows exactly how big it is. But given its scope and diversity, from people scooping chow in Afghanistan to handling the country’s most vital secrets, there are countless cracks through which information can escape.

Sunday’s revelation could make government leaders rethink the access now given to the private-sector companies that are inextricably tied to the functions of the intelligence and defense agencies.

“Obviously, leaks can come from inside the government too, as Washington learned when a young Army private named Bradley Manning grew disenchanted with the war he saw from his post in Iraq. But for now, the Guardian’s reporting puts contractors under a new microscope. … Snowden … could also be one of any number of the highly paid, white-collar ‘knowledge workers’ toiling away in Virginia’s Fairfax County suburbs near the CIA, or along the Baltimore-Washington Parkway that runs past the Fort Meade headquarters of the National Security Agency. Many of them were officers in the agencies for which they went on to consult” http://bit.ly/18YZc1Q

OBAMA AND XI MAKE NICE BUT ANY PROGRESS? — NYT’s David E. Sanger: “President Obama and Xi Jinping, the Chinese leader, emerged over the weekend in California… declaring their determination to keep disputes over cyberespionage and territorial claims in the Pacific from descending into a cold war mentality … But officials on both sides described forces at work in Beijing and in Washington that risked pushing Mr. Obama and Mr. Xi into exactly the trap they warned against. American intelligence officials have told Mr. Obama that the cyberattacks on American companies emanating from China … are caused by the increasing desperation inside China to keep its economy growing at 7 or 8 percent a year. …

“American officials who attended the summit meeting at the Sunnylands estate in Rancho Mirage, Calif., say Mr. Xi gave no ground on those claims. Mr. Obama’s team was looking for indications of how the new Chinese president … would balance his nation’s short-term needs and its long-term interests. … American and Chinese officials appear to finally be on the same page about how to contain a nuclear North Korea. During the talks at Sunnylands, according to two officials, the Chinese spoke in unusually specific terms about how they might use their leverage as the North’s economic savior and energy provider to bring its young leader, Kim Jong-un, to heel” http://nyti.ms/19eHMkm

PLENTY OF CONFLICT TO COME — Bloomberg’s David J. Lynch: “Though they bonded at their two-day California summit, sharing small talk about exercise and a shirt-sleeve stroll in the unforgiving desert sun, the presidents of the world’s two largest economies still confront a range of issues that threaten to pull them apart. … Obama and … Xi … face protracted wrangling on cyber spying, North Korea’s nuclear ambitions and human rights. Long after the glow of their one-on-one chats — rare for American and Chinese official exchanges — has faded, the haggling will resume. On July 8, cabinet-level officials from the U.S. and China are scheduled to meet in Washington for the fifth Strategic and Economic Dialogue. The opposite of this weekend’s informal get-together, that five-day conclave will test the idea that presidential chemistry can nudge Sino-U.S. ties toward the ‘comprehensive partnership’ that National Security Advisor Tom Donilon described as the U.S. goal.” http://bloom.bg/11BGRGb

SEC CHIEF COUNSEL FACES WHISTLE BLOWER COMPLAINT — FT’s Tom Braithwaite and Kara Scannell in New York: “The new chief counsel to the [SEC] chairman is the subject of a discrimination complaint from a former colleague at Deutsche Bank, who claims he was fired for blowing the whistle on fraud.

Robert Rice joined the SEC last week, working directly for Mary Jo White, the new SEC chairman. He moved from Deutsche where he was head of governance, litigation and regulation for the Americas. …

“Eric Ben-Artzi, a former Deutsche risk manager, filed a discrimination complaint with the US Department of Labor last year, alleging he was fired after telling the SEC that Germany’s biggest bank had hidden billions of dollars of losses with mismarked derivatives positions. … Deutsche said on Friday: ‘These allegations, which are now three years old, have been the subject of a careful and thorough independent investigation and found to be without merit.’” http://on.ft.com/1bmcoxb

CORKER AND WARNER BOOST GSE REFORM DEBATE — American Banker’s Donna Borak and Victoria Finkle: “After years of housing finance reform efforts languishing in Congress, a draft bill by Sens. Bob Corker, R-Tenn. and Mark Warner, D-Va., appears poised to become the catalyst for finally moving ahead on a way to overhaul Fannie Mae and Freddie Mac. Building off of themes that have circulated in Washington since the government's takeover of the two government-sponsored … the two senators have attempted to put those concepts into legislation, offering an opportunity for what some are calling an ‘honest conversation’ about GSE reform. …

“In drafting their proposal, both senators ‘tried to shoot for the middle, where they could draw broad bipartisan agreement’ even if there were areas — like a government guarantee — where some lawmakers might be skeptical, said Mark Calabria, director of financial regulation at the Cato Institute. … Although it is unlikely that Congress will pass any reform bill this year, the fact that a discussion is now occurring offers some hope for 2014. … The plan by Corker and Warner would unwind the government-sponsored enterprises, expand the role of private mortgage insurers and install a government backstop that would offer a common securitization platform and provide catastrophic re-insurance.” http://bit.ly/112zzLQ

TWO KOREAS SEEK TO RENEW TIES — NYT’s Choe Sang-Hun: “North and South Korea agreed Monday to hold high-level government talks later this week to discuss reversing not only the recent suspension of their joint operation of an industrial complex in a Northern border town, but also other economic and humanitarian projects that faltered years ago amid tensions built by North Korean nuclear tests, international sanctions and threats of war. The agreement was struck between delegates from the two Koreas after 17 hours of negotiations at the ‘truce village’ of Panmunjom straddling the inter-Korean border …. The high-level dialogue, which the two sides agreed to hold in Seoul on Wednesday and Thursday, will be the first senior government talks on the divided Korean Peninsula in six years. The agreement was a clear sign that North and South Korea were easing tensions and moving toward a thaw after years of recriminations that hit a peak earlier this year, after the North’s third nuclear test prompted broad international sanctions.” http://nyti.ms/15P40VK

** A message from the Investment Company Institute: Americans are building retirement preparedness paycheck by paycheck — thanks in no small part to the tax incentives for saving through such defined contribution (DC) plans as 401(k)s. Those tax incentives are crucial to the success of our retirement system. Limiting those incentives would:

· Affect savers at all income levels — not just those in the top brackets

· Undermine the foundation of employment-based retirement savings

· Discourage employers from offering plans — and employees from participating in them

· Jeopardize our nation’s progress on retirement security

Studies show that overwhelming majorities of Americans believe that preserving DC plan tax incentives should be a national priority. Those concerned about the future of retirement should listen to 401(k) savers, who support this key component of U.S. retirement security.

** A message from the Independent Community Bankers of America: The first U.S. community banks were formed in the wake of the American Revolution to stabilize the nation’s postwar finances. By providing loans to entrepreneurs and developers, these community banks were soon stimulating economic growth and financing the rise of the world’s greatest democracy. Their legacy of relationship banking and local economic and job growth continues to this day, with more than 2,500 of the nation’s community banks in business for more than 100 years and the oldest dating to the presidency of John Adams. Today serving communities in every congressional district, community bankers nationwide urge Congress to advance tailored banking regulations that will allow these job creators to continue supporting local economic growth for decades to come. www.icba.org/aboutus **

Authors:

About The Author

Ben White is POLITICO Pro's chief economic correspondent and author of the “Morning Money” column covering the nexus of finance and public policy.

Prior to joining POLITICO in the fall of 2009, Mr. White served as a Wall Street reporter for the New York Times, where he shared a Society of Business Editors and Writers award for breaking news coverage of the financial crisis.

From 2005 to 2007, White was Wall Street correspondent and U.S. Banking Editor at the Financial Times.

White worked at the Washington Post for nine years before joining the FT. He served as national political researcher and research assistant to columnist David S. Broder and later as Wall Street correspondent.

White, a 1994 graduate of Kenyon College, has two sons and lives in New York City.